General Motors says bankruptcy excuses it from repairs on 400K cars

View full sizeAP file photoGeneral Motors Co. is attempting to dodge fixing suspension problems on more than 400,000 vehicles by blaming it on its former self.

General Motors Co. is hiding behind its former self in an attempt to dodge being responsible for fixing suspension problems on more than 400,000 vehicles.

The Detroit automaker says it is not responsible for the suspension repairs on more than 400,000 Chevrolet Impala models from 2007 and 2008 because the flaw predated its bankruptcy.

Aug. 19, Reuters: “ … In a recent filing with the U.S. District Court in Detroit, GM noted that the cars were made by its predecessor General Motors Corp. (not Co.), now called Motors Liquidation Co or "Old GM," before its 2009 bankruptcy and federal bailout.”

The current company, commonly known as the "New GM," said it did not assume responsibility under the reorganization to fix the Impala problem, but only to make repairs "subject to conditions and limitations" in express written warranties, according to Reuters.

Experts not involved with the lawsuit, which sparked the debate, say it is quite common for a company to not assume any responsibility for problems facing their pre-bankrupt company.